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DGI Adventure – 09-11-2015 Week in Review

Forgive me father for I have sinned. I identified very high
quality stocks that I believe are trading at a severe discount to fair value,
but I did not buy them because of temporary market conditions. You see, the
market has been really volatile lately, and The Fed could raise interest rates
next week, and it’s September in a pre-election year…a 7th year of a
presidential term pre-election year at that! Historically this time of year in
those sorts of years there is a big fat statistical dip in the general stock
market followed by a 4th quarter rally. Of course the crash in
October of 1987 weighs very heavily on those averages…The point remains…there
are some good deals, but what if I could get even better deals in the next
month?

Penance is two Our Buffets and three Hail Grahams.

On Tuesday my extremely aggressive limit order for BBL
wasn’t fulfilled in time for the ex-dividend date on 9/9. It was never
fulfilled. Ditto for TROW and its ex-dividend today (limit order set at
$65.10/share). OHI hovered within 2% of my $32.00/share limit order all week
before rallying the last two days to nearly $33/share. It got down to $32.01 on
Friday 9/4.

The limit orders that were fulfilled on 8/24 for WHG and CAT
are a mixed bag. Other than briefly at market open yesterday, WHG hasn’t gone
below purchase price, CAT is down a little over 1%. WHG also went ex-dividend
on 9/9, and I look forward to the $0.50/share quarterly dividend that will be
paid on 9/29.

Thou can’t time the market, so thou shall not try to!

I cannot.

But what if it drops? Big time? I really kinda think it
might.

I’m probably wrong.

$32.00/share might not be low enough for OHI, especially if
it’s rate hike pressure that pushes it down.

And what shall I do with the other ammo in the cash gun? I’m
sitting on at least two more bullets that haven’t even been allocated as limit
orders yet. Waiting for what? EMR, CMI and O sit in the crosshairs. Part of me
wants to wait for O after the Fed move whenever that finally happens. But that
should also represent a great opportunity to average down on HCP…maybe enough
exposure at this point to that particular REIT and its senior living weighting
problem.

There are only 13 trading days left in the 3rd
quarter. You’re not a trader. Why are you talking about trading days?

Hail Graham, mother of Buffet. Pray for us traders, now at
the hour of timing the market.